Leading Ad Exec on Googleclick: Deal Should Raise “Privacy Concerns”

Omnicom Group is a global advertising/marketing powerhouse, controlling such well known “brands” as BBDO, DDB and TBWA. They represent PepsiCo, P&G, Apple, Fedex, McDonald’s, etc. etc. They know the business. Here’s what Omnicom’s president John D. Wren said yesterday about Google’s Doubleclick deal, in a story written by Reuters (my bold and italics):
“What it’s going to raise – and this will be a very good conversation in the marketplace – are privacy concerns. The technology that exists far exceeds the laws and thinking of the people that are going to be impacted by it,” he told investors on a conference call. Wren welcomed what he said would be a healthy debate that will ultimately clarify privacy laws when it comes to consumer information on the Internet.

“I’m encouraged by the deal, because I’m most encouraged by the discussion that the deal is going to cause the marketplace to have. Any definition will be positive for us.”

In other words, even the ad industry recognizes that the powerful and intrusive tools they have developed require safeguards, rules, policies, limits. For both privacy and the interactive ad market.

Doubleclick’s Data “Boomerang”–Behavioral Targeting Power

excerpt from “Boomerang for Advertisers and Agencies”–“You are in a continual search for that desirable, yet elusive audience: the interested consumer. Boomerang, DoubleClick’s one-to-one targeting solution, empowers you to identify and re-target across your media buy customized segments of prospects and customers based on actions they’ve taken on your site and other marketing messages they’ve received. The result is a dramatic increase in customer acquisition, conversion, and retention metrics.

“Leverage the Power of Behavioral Targeting
Behavioral targeting is the most effective form of targeting available. It allows you to re-target to the most desirable audience of all: browsers who have already shown an interest in your product or service. With Boomerang, you can now engage that audience in a dialogue, providing timely and relevant messages triggered by their online actions. Boomerang delivers true behavior-driven advertising, so you can reach pre-qualified prospects and customers quickly and easily…

Use Boomerang to Get Better Results
Smart marketers have used Boomerang to:
• Re-target customers who have already browsed their site to bring them back
• Re-target site visitors that have “dropped off” of the purchase process with a related message to drive them back to the site
• Upsell and cross-sell customers that have already purchased core products
• Reach customers who have not visited or purchased recently to reactivate them
• Show specific advertising messages based on expressed interests, such as delivering an ad for a new car model to a browser that downloaded a brochure on last year’s model
• Test different offers and price points to determine the most effective for converting browsers into buyers”

product overview available via here:[pdf to download]

From a Doubleclick job announcement for “senior statistician” (excerpt): “DoubleClick is an application service provider, handling a staggering 12 billion transactions per day, and managing up to 160,000 hits per second on its global network. Our suite of products is driven by the DoubleClick Technology Group (DTG), comprised of over 300 IT professionals, located in New York, Colorado, Chicago, San Francisco and Europe.”

and an excerpt from: “Schmidt Defends DoubleClick Buy, Net Neutrality.” WebProNews
Schmidt said DoubleClick’s ad technology was what made the company attractive. “Advertising is really about relevance,” he [Google’s Eric Schmidt] said. It’s really about efficiency; it’s really about measurability. There’s not been a lot of technology applied to advertising over the past 10 or 20 years except for a few companies, DoubleClick being one of them.”

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U.S. Search Market is Consolidated. Google to Have 75% Share

eMarketer’s release on its new report that: “There are two giants in the space, and they are getting bigger! Saying that search engine marketing is a highly concentrated industry is an understatement… [my bold]


“Google and Yahoo!’s share of U.S. Paid Search Advertising Spending”
2007 (estimates)
Google: 75.6%
Yahoo!: 16.3%
Total Market Share of the two: 91.9%


“… according to comScore, US Internet users performed 75.8% of their January 2007 searches on Google or Yahoo!, and Nielsen//NetRatings put the combined total at 76.4%… “In fact, over 90% of US paid search ad spending will go to the two search giants in 2007…”
“US spending on search advertising will rise by more than $3.2 billion from 2006 to 2008 alone… Paid search is currently the key driver of US online advertising, and spending on paid search in 2008 will exceed the $9.6 billion that was spent on all online advertising in 2004.”

from: “The Unstoppable Surge of Search Advertising.” April 20, 2007

Faster Than You Can Say Doubleclick: Google’s YouTube to Collect More Data

From Advertising Age:

excerpt: “Coming this fall from YouTube: richer demographic information.

“We’ll never have had that much data about that much content,” said Suzie Reider, chief marketing officer at YouTube. She was speaking to a group of advertising research executives in New York at the Advertising Research Foundation’s Rethink conference.

“By Q3 we’ll have a tremendous amount of metrics and data around every video,” she said. “There’s lots you can glean from looking at who’s looking at what. It’s a real-time focus group that happens all day, every day.”

“At ARF: YouTube to Get Richer Demo Data.” Abbey Klaassen. Advertising Age. April 17, 2007 [sub required]

Industry Insider Describes

“DoubleClick serves more display ads for more advertisers and more agencies and more publishers than any other company in the world. With this deal, Google now controls more display advertising than any other company, which nicely complements their other businesses where they control more search and contextual advertising than any other company in the world… DoubleClick currently processes more online ad campaigns and more ad transactions than any other company in the world, by far, particularly at the high end of the market. This data is a treasure trove. If Google wanted to, it could know exactly how much money its AdSense distribution partners make from other ad distributors, be they Yahoo! or Advertising.com or MSN. This is very powerful data.

Even if they don’t ever access the data itself, the metadata (the data about the data) is incredibly valuable. It is as if the world’s biggest stock broker just bought the world largest stock exchange. Plus, DoubleClick probably sets more cookies on more consumer browsers than any other company in the world as well.

Just the analysis of this data could yield for Google the keys to dramatically improving the targeting of all of their ads.”

From: “Google/DoubleClick: It’s About Display, Data And Defense.” Curt Viebranz, Online Media Daily. April 16, 2007.

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From Doubleclicks’ March 2007 study on what it collects via broadband video (my italics):
“DoubleClick…announced the results of its recent research of online video ad placements, illustrating that video is a highly effective format for online advertising. Findings show that audiences have high interaction rates with video ads, users click the “Play” button more than they click on image ads, video ads are typically played two-thirds of the way through and video ad click rates are far higher than those of image format ads.

DoubleClick conducted its analysis of more than 300 online video ad campaigns that were placed by more than 130 advertisers over a four-month period in 2006… The interaction rate is the “all in” metric, including the sum total of all interactions that people have with the video ad units. Those include mouseovers, expansions, interactions with the video control buttons, clicks and other events…. “The best standard data you get on audience measurement of TV commercials is limited to reach and frequency or specialized brand studies. However, online video metrics available today, like interaction rate, play rate, video completion rate and so on, give advertisers much greater insight into how consumers are actually engaging with the ads and their brands,” said Marianne Caponnetto, Chief Sales and Marketing Officer for DoubleClick.”

And from Doubleclick’s Dart Motif product:

“Deliver an emotional brand experience with video.
Convey your brand message with believability and emotion by adding Video to your Motif rich media ads. Ads including Video deliver nearly three times higher brand awareness and message association, and more than 100 percent higher purchase intent and online ad awareness than non-rich media ads.”

“Audience Interaction Metrics: Motif’s exclusive Audience Interaction Metrics Package lets you gather data on more than 100 unique interactions in every creative unit including multiple exit links, counters, timers and video metrics. You’ll automatically get metrics on how long each ad was displayed or how the viewer interacted with the ad. Plus, you can customize additional events to track based on your creative concept.”

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We Need FTC to Protect Privacy. Privacy Groups Should Be Calling for Real Action–not Industry Friendly “Workshops”

My organization and the U.S. Public Interest Research Group have asked the Federal Trade Commission to swiftly act and protect our privacy online. Last November, we filed a lengthy complaint asking for an intervention to stop behavioral targeting [pdf from Doubleclick] and associated spyware. But it seems that some groups aren’t that interested in action. They want the industry bigshots (who may be their funders) to come into the FTC and agree on “best practices.” That will likely mean no real privacy protection. Here’s the excerpt from a CNET story:

“The CDT has urged the FTC to hold a workshop on behavioral targeting to set best practices in the industry and get players like Microsoft, Google and Yahoo to agree on them. The organization wants to ensure that people have control in the event that these companies begin to merge consumer information from search and Web-surfing records to personalize ads.”

Privacy groups need to demand that the FTC finish its investigation (it launched one last November as a result of our complaint). We have provided the FTC with so much additional information, they should be able to act by now. Workshops are a delaying tactic designed to help out the special interests. If you want to see just a small fraction of what we’ve sent the FTC investigative team, go to adwatch.

PS: Here’s the blog post from the Center for Democracy and Technology on its request for a FTC workshop. Read its letter to the FTC. Then ask yourself. Shouldn’t public interest groups identify in such a letter the companies which fund them and engage in behavioral targeting? Shouldn’t they acknowledge that one of their key supporters, Microsoft, is the subject of a related complaint now before the FTC? Follow the money and the data mining it helps bring.

Scott Cleland on Google-Doubleclick: `Competition Foreclosure’

We agree with much of Mr. Cleland’s analysis that the Google acquisition of Doubleclick raises serious concerns about the future of the digital marketplace. But, unlike Scott, we believe the deal has critical antitrust implications (and has nothing to do with net neutrality). Here are key excerpts from his longer piece:


“Just as Microsoft vertically-leveraged (bundled/tied) its operating system dominance to dominate the office applications market via the Windows platform, Google apparently looks to vertically-leverage (bundle/tie) its keyword search dominance with DoubleClick’s leadership in online banner/video display advertising, and with its Google-YouTubedominance in video search…This vertical combination reportedly could give Google-DoubleClick upwards of 80% of the overall market for advertisements provided to third-party websites. Just like Microsoft became the default office applications platformfor email, e-calendars, word processing, spreadsheets, and PowerPoint, for any user, Google has obvious designs on becoming the default Internet advertising broker/platform for: keywords, website display ads, and TV, radio, newspaper/magazine advertisingfor the average large advertiser… If Google can gain the first-mover advantages of offering advertisers the super- efficiencies of cross-media-platform advertising optimization, i.e. a vertically-integrated/tied advertising platform, individual advertising mediums and companies will largely be at their (anti-)competitive mercy going forward. Game. Set. Match…The DoubleClick acquisition, like Google’s acquisition of YouTube, is really all about achieving competitive foreclosure long term. Google’s “partnership’ strategy is also all about competitive foreclosure…”

“Google Achieves Behavioral Targeting Nirvana” [recommended reading. Excerpt]

The following in an excerpt from an article by Rich Tehrani, president and editor-in-chief, TNC. We urge everyone to read the entire piece:
“Imagine a world where advertisers would be able to predict your detailed behavior online. They would know when you are about to buy a song, a car, a present for your spouse – they would know virtually everything you are thinking. If you believe this is impossible then you would be wrong as there are a few companies who have access to enough Internet data to make this privacy lover’s nightmare a reality and believe it or not a relatively new science called behavioral targeting is taking the online advertising world by storm… Last week however the game of behavioral targeting got even more competitive as Google announced they are purchasing DoubleClick. DoubleClick is the leading company in the business of displaying advertising online…With the acquisition of DoubleClick, Google now has access to the cookies and subsequently browsing history of vast numbers of web users. It would be fair to say that greater than 85% of Internet users frequently come into contact with ads served by DoubleClick. In addition there are a vast number of sites serving up Google’s ads and running Google Analytics. Google perhaps now has access to the behavioral information of over 90% of web users.
One can expect Google to start mining DoubleClick’s databases immediately and in the process, cross reference this data with its own vast databases of search history and perhaps even Gmail content.”